See-Saw Ltd Uses Moving Weighted Average for Its Inventory,which Is

question 9

Multiple Choice

See-Saw Ltd uses moving weighted average for its inventory,which is valued at $276 000.It is considering a change to FIFO,which would decrease the valuation to $245 000.
-Which of the following would be decreased by the change?

• A) Cash
• B) Cost of goods sold
• C) Net profit
• D) No accounts would be decreased

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Definitions:

Multinational Organization

is a business entity that operates in multiple countries outside of its original or home country, managing production or delivering services in several countries.

Market Price

The current price at which an asset or service can be bought or sold in a particular market, determined by supply and demand dynamics.

Open Pay System

A compensation strategy where an organization openly shares salary ranges and sometimes individual salaries, aiming for transparency.

Pay Compression

Pay compression occurs when there is only a small difference in pay between employees regardless of their skills, experience, or job responsibilities, often resulting in dissatisfaction among more qualified or experienced employees.